Solving the Social Media ROI Puzzle

social media under a magnifying  glassIf you were asked to calculate social media ROI, could you?

What starts with hello, can grow into a trusted relationship and result in revenue …

… but how to measure it?

Here are three resources that provide insight into social media ROI:

  1. The Social Media ROI Cookbook, from Altimeter

This slideshare offers 6 different methodologies for measuring the results of your social campaigns.

I find it strangely reassuring that even large companies with lots of resources still struggle with finding a consistent way to measure ROI, and “anecdotes” is the leading method.

All 6 approaches are listed below, and more detailed descriptions are available here.6ways to measure social media ROI bar chart2. FREE E-Book: 166 Case Studies That Prove Social Media Marketing ROI

If you follow Rob Petersen, you’ve undoubtedly seen his blog posts with social media case studies that prove ROI.  Now, he’s compiled them into an e-book.

The great thing about this book, aside from the obvious abundance of evidence that proves social media value, is as a source for creative inspiration.

His examples cut across every business type and size, so you are likely to find a business similar to your own.  It’s a great read.  (and available free on his blog).

3. Avinash Kaushik’s Blog: Occam’s Razor

No discussion of social media ROI would be complete without mentioning Avinash Kaushik, Google guru and author of the blog Occams Razor.

His many useful posts tell you which metrics are right for which circumstance.  Two of my favorites are here and here … challenging reads, but a good way to start thinking about the metrics that matter.

Now that every click can be measured, social media marketers will increasingly be asked to solve the ROI puzzle.

It’s still early in the game … technology continues to emerge … but these social media ROI case studies and resources are a good starting point.

But in the end, I tend to agree with Avinash Kaushik, who says that “you don’t participate in social media to only drive business outcomes”.   True … the value of relationships and other intangibles like customer insight and word of mouth are  impossible to measure.

Still, showing economic value, even if it doesn’t capture the entire benefit, will result in better decisions and a higher level of confidence in the value of your efforts, not to mention growing budgets:)

What’s your feeling about the social media ROI question?

Thanks for stopping by!  Tweet me, connect on Linkedin, or leave a question or comment on my my facebook page, where I share marketing tips, opinions, and news.

About these ads

About Rhonda Hurwitz

Rhonda Hurwitz is a content strategist and marketing consultant who helps mid-sized businesses develop more effective online strategies. @rhondahurwitz on Twitter, and on Forbes.com: http://blogs.forbes.com/people/rhondahurwitz/
This entry was posted in social media, Social Media Best Practices, social media ROI and tagged . Bookmark the permalink.

One Response to Solving the Social Media ROI Puzzle

  1. Great info and superbly written. Keep up the superb stuff!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s